Polygon (MATIC) Charge to $1 Hit by Shock SEC Lawsuit Naming

Rough road to $1: MATIC investors shaken up by SEC’s bald move to call out ‘unregistered securities’.

Whale with a Polygon Matic in his teeth and polygon puzzle pieces scattered everywhere.
Created by Kornelija Poderskytė from DailyCoin
  • Polygon’s PoS blockchain hit a new all-time high in transactions.
  • One large Polygon whale shifts nearly 10M MATIC to FalconX.
  • Polygon dips 8% after the SEC names $MATIC a security.

Polygon’s success this year is undeniable, accomplishing several key milestones on the Layer-2 chain. After setting a new all-time high of daily activity last week with over 16.4 million transactions, Polygon (MATIC) rushed to retest $1 on November 15, 2023.

However, $MATIC got rejected at $0.956, despite displaying a strong technical foundation, based on huge inflows and decentralized exchange (DEX) trading volumes setting a new 8-month high of $400M. All this has heavily contributed to the monthly 52% bull run for $MATIC.

Regardless, Polygon (MATIC) now faces new challenges with the U.S. Securities and Exchange Commission (SEC). In the early hours of Tuesday 21 November 2023, Gary Gensler’s SEC dropped a bombshell on Polygon, by naming Polygon’s $MATIC as one of the 16 ‘unregistered securities’ involved in the cryptocurrency trading on the Kraken crypto exchange.

SEC Crypto Crackdown Triggers MATIC Price Dip

Following the news of the second legal complaint against Kraken, Polygon’s price dipped by 8%. With the trading volume now encompassing $501,143,555, Polygon (MATIC) outscores higher-ranked Cardano (ADA) and Tron (TRX). However, the majority of the crypto community attributes this to traders cashing out following the SEC news.

Previously the U.S. Securities and Exchange Commission (SEC) fined Kraken exchange $30 million for offering ‘unregistered securities staking’ services, specifically for Ether (ETH) staking. While Ethereum is not mentioned in the follow-up lawsuit, the attempt to cut Kraken’s legs comes packed with 16 other cryptocurrencies named as securities.

Indeed, the 8% daily market downturn for Polygon threw $MATIC back to the weekly lows. At press time, $MATIC trades at $0.79459, dipping below the confluent $0.80 support for the third time this week. Naturally, crypto traders are tense about $MATIC’s potential bottom. Market Analyst CT marked the $0.79 price range as the turning point, as $MATIC could plunge to $0.50 if $MATIC price fails to sustain support below $0.7904.

Whale Shuffles 9.99M MATIC: Gearing Up for $1?

Meanwhile, unusual on-chain transactions have been spotted by crypto whale tracking systems. The latest one includes a whopping 9,999,923 MATIC being sent to FalconX, an institutional crypto trading company. Carried out 7 hours ago, this colossal whale transfer sparked a poll for crypto traders on 𝕏.

The move initiated discussion amongst crypto traders on 𝕏, with 63.5% of voters suggesting that the crypto whale is going to sell the 9,999,923 MATIC tokens, worth over $8 million. Another 25.7% chose the ‘pump to sell’ option – this scenario is also backed by up by real-time on-chain signals, which point to increased whale concentration by 0.27%, according to blockchain data analysis platform IntoTheBlock.

On The Flipside

  • Getting targeted by the U.S. Securities and Exchange Commission (SEC) doesn’t necessarily have a negative impact on the altcoin’s long-term value.
  • For instance, the high-profile SEC vs. Ripple case contributed to XRP’s social dominance and sparked several price surges following favorable case rulings.

Why This Matters

Cryptocurrency whale movement is instrumental in assessing the crypto market sentiment. Cryptocurrency regulation has the potential to bring clarity and quality control in the space. 

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.